Springsure Creek JORC Resource Update
Sydney, Aug 3, 2012 AEST (ABN Newswire) - Bandanna Energy Limited (ASX:BND), through its wholly owned subsidiary Springsure Creek Coal Pty Ltd, is pleased to announce a Resource in the Springton domain Aries 2 Seam totalling 259.4 million tonnes. This Resource comprises a Measured Resource of 52.8 million tonnes, an Indicated Resource of 140.3 million tonnes and an Inferred Resource of 66.3 million tonnes (Table 1, see link at bottom). The new Resource statement follows the completion of boreholes intersecting the targeted Aries 2 Seam from December 2011 to June 2012.
The Springton domain was the focus of drilling from December 2011, with all drilling occurring on the property Denlo Park, owned by a Bandanna subsidiary company. Denlo Park is the site of the main entry and first development of a planned high production underground longwall mine in the Aries 2 Seam.
The maiden 52.8 million tonnes of Measured Resource is a significant step up in the geological confidence of the Springsure Creek project. This progressive improvement will enable a new determination of the mineable reserve to be made, especially in the early areas of the mine plan below Denlo Park to be mined in the first ten years.
No drilling occurred in the Turkey Creek, Moorooloo and Arcturus domains and previous resource certifications remain unchanged for those sections of the deposit (refer Table 1).
Additional to the Aries 2 Seam, Bandanna is pleased to announce the incorporation of 49.6 million tonnes of Inferred Resource in the Castor and Aries 3 Seams within the Springton domain. Both the Castor Seam and Aries 3 Seams are seen as potential targets for extended mine development in future years.
The JORC Resource for Springsure Creek now totals 543.7 million tonnes.
In addition to the Resource upgrade, a series of geotechnical holes have been drilled along the proposed main access declines, which provide access to the seam from the surface. The information gathered has been used to design the entries and prepare preliminary tenders as part of the Definitive Feasibility Study (DFS), which is on track for completion in September 2012.
Additionally, a fully cored hole was drilled at the site of the proposed ventilation shaft. This hole will provide stratigraphical and geotechnical information for the design and tender of the shaft construction.
Drilling continues in Denlo Park with a view to expanding the Measured Resource and providing further geotechnical information for the DFS and mine design. Drilling is also scheduled to continue to the south of the Moorooloo line to convert the Indicated and Inferred JORC Resource in these domains to the higher category of Measured Resource, and underpin long term mine development.
Bandanna Energy Managing Director, Mr Michael Gray commented, "The maiden declaration of Measured Resource confirms Springsure Creek as a world class thermal coal project. Furthermore, it showcases Bandanna's resolve to consistently meet its exploration, environmental and engineering targets and timelines for the project to remain on course for coal production in the second half of 2014. We now await an updated Reserve declaration that will further demonstrate the engineering and financial feasibility of the proposed underground development".
Springsure Creek Coal Pty Ltd has secured 4 Mtpa export capacity for Springsure Creek through Stage 1 of the Wiggins Island Coal Export Terminal (WICET) at Gladstone. Springsure Creek Coal Pty Ltd has also secured both below rail and rail haulage contracts for the transportation of the Springsure Creek coal with QRN and Pacific National respectively.
View the full announcement here:
Bandanna Energy Limited
Michael Gray, CEO